BEIJING, March 11, 2015 /PRNewswire/ -- General Steel Holdings, Inc. ("General Steel" or the "Company") (NYSE: GSI), a leading non-state-owned steel producer in China, unveiled further plans for its logistics business through a new joint venture with strategic partners to mutually establish a new petroleum storage facility in South China's largest petro-chemical production base, Maoming City, Guangdong Province, China.
The new petroleum storage facility will make use of General Steel's land assets located in close proximity to Bo He Port of Maoming City, which enjoys a natural geographic advantage for petroleum storage and logistics. Recently, the Chinese government declared its intention to nearly double the nation's oil reserves from 50 days to 90 days by 2020.
This new plan is part of the Company's commitment to expand beyond the steel industry into alternative businesses. General Steel will own a share of the new entity and will receive a recurring stream of profits in accordance with the joint venture's profit-sharing agreement. Management reached this decision with a goal to maximize the utilization of the Company's land assets and enhance shareholder value.
Henry Yu, Chairman and Chief Executive Officer of General Steel commented, "We are pleased to announce new plans to deploy our valuable land assets in Maoming through the pending new joint venture with two large strategic partners. While a significant amount of work remains, we have been in active negotiations on the joint venture's key structural framework and expect the new logistics business to generate future positive financial contributions to General Steel."
About General Steel
General Steel Holdings, Inc. is a leading non-state-owned steel maker headquartered in Beijing, China. With seven million metric tons of crude steel production capacity under management and operations in Tianjin municipality and China's Shaanxi and Guangdong provinces, the Company produces a variety of steel products including rebar and high-speed wire.
In addition to its steel business, the Company also designs, manufactures, and integrates radio frequency identification ("RFID") systems. The Company's RFID technology provides real-time data on supplies, inventory, and goods, thereby greatly enhancing its customers' administration and planning processes, as well as, asset tracking and supply chain management.
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Forward-Looking Statements
This press release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations or beliefs about future events and financial, political and social trends and assumptions it has made based on information currently available to it. The Company cannot assure that any expectations, forecasts or assumptions made by management in preparing these forward-looking statements will prove accurate, or that any projections will be realized. Actual results could differ materially from those projected in the forward-looking statements as a result of inaccurate assumptions or a number of risks and uncertainties. These risks and uncertainties are set forth in the Company's filings under the Securities Act of 1933 and the Securities Exchange Act of 1934 under "Risk Factors" and elsewhere, including those disclosed in the Company's most recent Annual Report on Form 10-K, filed with the United States Securities and Exchange Commission. Forward-looking statements contained herein speak only as of the date of this release. The Company does not undertake any obligation to update or revise publicly any forward-looking statements, whether to reflect new information, future events or otherwise.
Contact Us
General Steel Holdings, Inc.
Joyce Sung
Tel: +1-347-534-1435
Email: joyce.sung@gshi-steel.com
Asia Bridge Capital Limited
Carene Toh
Tel: +1-888-957-3362
Email: generalsteel@asiabridgegroup.com
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